How to Buy Stellar Lumens (XLM)
See how the Stellar network works and learn how and where to buy Stellar Lumens (XLM) today!
What are Stellar Lumens (XLM)?
Stellar (XLM) has attracted a lot of attention lately as it recently reached a price of nearly $1 per XLM. The digital coin has strong and innovative features and is likely to become one of the leading cryptocurrencies.
So what is Stellar exactly? Well, Stellar is the name of the network that lets anyone send, receive or trade any kind of currency. The currency, whether fiat or crypto, can be exchanged with anyone else in the world almost instantly and at a few low cost.
Lumens is the name of the cryptocurrency coin, while Stellar is the name of the network.
Jed McCaleb created Stellar. McCaleb also founded Ripple and the now-defunct Bitcoin exchange Mt. Gox.
With Stellar, the idea is to create, “a worldwide financial network open to anyone.” The Stellar network essentially plans to become a sort of hyper-advanced variation of PayPal. It uses a process called “anchors” which holds your money and issues a credit allowing alternate currencies to be converted into Lumens. Stellar seems to be very focused on compatibility and upholding the basics of what a currency should be — something that is simple and quick to send and receive.
How Stellar Lumens Work?
In essence, Stellar is a matchmaker for currencies and facilitates international transfers and exchanges in any type of fiat currency or cryptocurrency.
Steller is very much like Ripple. However, the main differences are Steller has more of a focus on simplicity, scalability, and functionality, which helps move money in remote areas at lower costs.
There are three different ways to transfer money with the system:
– Direct exchange
– Exchange via XLM
– Chain of conversions
The Stellar network simultaneously does all of the above actions concurrently. When you make a transfer, the goal is to provide you with the best possible rates every time.
If you just want to send or receive money rather than make an exchange, it can do that by directly connecting individual entities.
How to buy XLM?
You are not currently able to buy XLM with “Fiat” currency, so you will need to first purchase another type of currency (like Bitcoin or Ethereum) then swap that for XLM at an exchange such as Binance, or at any of our other featured cryptocurrency exchanges, or brokerages.
Stellar Lumens Price
Lumens had a pretty stellar 2017, but things have not slowed down in 2018. At the time of writing, Stellar recently hit nearly $1.
The coverage of Stellar has been impressive, as has the performance of XLM. The amount of interest garnered as of late is unlikely to wane anytime soon. In fact, while the cryptocurrency market took a bit of a hit, Lumens continued to rally. Such performance bodes well for investors looking to jump onto the Cryptobandwagon in 2018.
Stellar vs Ripple
If Ripple was built with financial institutions in mind, then Stellar Lumens is for the common man. XLM has the potential to reinvent how we process peer-to-peer transactions on a global scale.
It is a versatile system, and it functions as a financial Swiss Army Knife. With Stellar, you can handle micro-payments with minimal fees, send remittances without currency exchange or bank transfers looming over you, and you can settle payments in real time (maximum 2-5 seconds).
Where to Buy Stellar Lumens
Stellar Lumens trades under the XLM ticker. The Stellar team changed the ticker from STR to XLM a while back, but some exchanges, haven’t yet replaced it.
Lumens are available to buy, sell, or trade on several markets, exchanges & platforms. However, investors should be aware that there is a very high risk in investing in digital currency because the prices can fluctuate wildly and could potentially lose value completely.
How to Find the Best Broker to Buy Stellar Lumens (XLM) Online
With such a high level of market competition and massive volume of exchanges and brokers to choose from, it may be difficult for beginners to decide how to invest. Before picking the right online broker to buy Lumens, keep these things in mind:
Regulation
Ensure that the Broker or Exchange you use is regulated by an organisation such as the Financial Conduct Authority in the UK (also known as the FCA). These types of authorities and regulatory bodies develop rules and services that protect the integrity of the market and safety of traders and investors. Due to safety concerns, make sure to open your XLM trading account with a regulated broker.
Customer Service
Cryptocurrency trading happens online 24 hours a day, which means that customer support needs to be available at all times. Primarily, you will want to speak to a live support person. When checking out support, ask pertinent questions to find out if the representative is reliable or not. any brokerages have a local office.
Also, the details of a trustworthy broker should be out in the open, either online or otherwise, for the public to see.
Account Types
Your ideal online broker to buying or trading Stellar Lumens should offer either multiple account options or an element of customizability with your account. The broker may even have a separate account for beginning traders. Look for a broker that provides competitive spreads and easy deposits and withdrawals.
Tradeable Assets
Many people tend to focus on just one asset class when selecting a crypto broker. However, keep in mind there are many other types of investment alternatives with which you can work. These include stocks, shares, Forex, ETFs, other popular cryptocurrencies, CFDs, or futures to name a few.
Fees
If you want to buy Stellar Lumens, it costs money. Cryptocurrency brokers usually charge a percentage, but you may choose to find a broker who charges a flat fee instead, as opposed to a percentage model.
Liquidity
Because Lumens are traded in a market where people are always looking to both buy and sell, make sure you consider the amount of liquidity an exchange has. Liquidity is the ability to sell an asset or currency without wrecking the price.
For more information on Cryptocurrency trading, please see our tutorial: The Basics of Cryptocurrency.
